France’s Economy Ministry Projects Public Debt at 119.3% of GDP in 2026, 121.7% in 2027

France’s Ministry of the Economy and Finance says France’s public debt will reach 119.3% of GDP in 2026 and 121.7% in 2027, with the debt levels described as the highest since 1995.

“approaching 122%,”

DW

The Ministry of Finance also projects a public deficit of 5.4% of GDP in 2026 and a deficit of 5.0% in 2027, and it frames the rise as tied to a deficit that remains high.

BFM

DW reports that the Ministry of Finance announced the debt outlook “approaching 122%,” days after the government unveiled a 62 billion-dollar fiscal adjustment.

DIE WELT adds that the debt would be more than twice the EU reference ceiling of 60 percent of GDP, and it says the Paris government expects the deficit to stand at 5.4% this year and to reach 5.4% this year.

In the eurozone, DIE WELT says France is the third-most indebted country, with only Greece and Italy higher, while Boursorama says the figures were disclosed to the High Council of Public Finances.

Bercy’s explanation, as quoted by BFM, is that “This rise is mechanical. It is the consequence of a deficit that remains high,” with the ministry telling journalists the deficit is 5.4% of GDP in 2026.

France’s budget texts for 2027 were submitted to the High Council of Public Finances (HCFP), which BFM says will provide its view on the “credibility” of macroeconomic trajectories.

Boursorama

France 24 reports that Finance Minister Roland Lescure described the 5% of GDP deficit target for 2027 as “ambitious” but “obviously achievable.”

Le Figaro reports that Prime Minister Sébastien Lecornu left to Parliament the task of deciding measures, including sensitive ones concerning retirees, as the government refined its ideas to make retirees contribute to the budgetary effort.

In the political debate, Le Figaro says the government’s savings effort is 54 billion euros next year, while France 24 quotes Jordan Bardella warning that a budget that worsens waste and raises mandatory levies “would have catastrophic consequences.”

The Ministry of the Economy and Finance says the state budget bill and the social security budget for 2027 will be presented to the Council of Ministers on October 1, before parliamentary examination, and it notes the HCFP’s advisory consultation is mandatory.

“debt will continue to rise “mechanically.””

Le Figaro

BFM says the HCFP is an arm of the Court of Auditors and that it is mandatory to consult it on the macroeconomic trajectories, while Le Monde frames the debt increase as mechanical as long as the public deficit has not fallen back below 3% of GDP.

Le Figaro reports that Bercy warns debt will continue to rise “mechanically,” and it says the government expects a public deficit of 5.4% in 2026 up from 5.1% in 2025.

France 24 says the government’s 2027 budget is intended to be “offensive” with a 54 billion euros effort, while also leaving Parliament to decide measures affecting retirees.

In the same reporting, Le Figaro says retirees could see the cap on the tax deduction lowered to 3,000 euros compared with a current maximum of 4,439 euros, a measure it says would raise 1.4 billion euros, as the government seeks savings to clean up public finances.